Effect of Public Policies on Small, and Medium Enterprises Development in North Central Nigeria
Abstract
Abstract Views: 0
The study examined the effect of public policies, specifically tax reform, on the growth of Small and Medium Enterprises (SMEs) in North Central Nigeria. The study adopted the Institutional Theory as its theoretical framework, which posits that economic growth is generated internally through factors like innovation and investment in human capital, influenced by policy. The research utilized both survey and documentary research designs to gather comprehensive data. The population of the study comprised all registered SMEs in the six states of North Central Nigeria and the FCT, totaling 15,800 enterprises. A sample of 390 SME owners and managers was selected using the Taro Yamane formula for sample size determination. Both primary and secondary methods were used to collect data for the study; primary data was gathered through structured questionnaires, while secondary data was sourced from publications by the National Bureau of Statistics (NBS) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). A quantitative statistical technique, specifically hierarchical multiple regression analysis, was used to analyze the data and test the formulated hypotheses. The major findings revealed that fiscal incentives do not have a statistically significant effect on the profitability of SMEs. It was also revealed that access to credit schemes, as currently implemented, has no significant impact on the market share growth of these enterprises. It further revealed that the entrepreneurial training programs provided by government agencies do not significantly influence the level of innovation within SMEs. The study concluded that despite the existence of various public policies aimed at fostering SME development, there is a significant disconnect between policy intent and actual outcomes, suggesting that the current policy mechanisms are ineffective in driving SME growth in the region. The study recommended, among others, a fundamental redesign of policy implementation and monitoring frameworks to ensure they are targeted, performance-based, and address the specific, on-the-ground challenges faced by SMEs.
Downloads
References
Aiga, H., Kawakatsu, Y., Kadoi, N., Obeng, E., Addai, F. T., Ofosu, F., Fujishima, K., Omachi, M., & Yamaguchi, E. (2024). Effectiveness of a community-based intervention package in maternal health service utilization: A cross-sectional quasi-experimental study in rural Ghana. PLOS ONE, 19(11), Article e0311966. https://doi.org/10.1371 /journal.pone.0311966.
Anthony, U. A., Salisu, S. M., Aminu, U., & Bashar, N. M. (2023). Access to finance and its impact on small and medium enterprise (SMEs) performance in Kano State. Gusau Journal of Economics and Development Studies, 4(1), 199–210 https://doi.org/10.57233 /gujeds.v4i1.13
Bello, H. O., Idemudia, C., & Iyelolu, T. V. (2024). Navigating financial compliance in small and medium-sized enterprises (SMEs): Overcoming challenges and implementing effective solutions. World Journal of Advanced Research and Reviews, 23(1), 42–55. https://doi.org/10.30574/wjarr.2024.23.1.1984
Brenner, S., Favaretti, C., Lohmann, J., Chinkhumba, J., Muula, A. S., & De Allegri, M. (2021). Implementation of a performance-based financing scheme in Malawi and resulting externalities on the quality of care of non-incentivized services. BMC Pregnancy and Childbirth, 21(1), Article e408. https://doi.org/10.1186/s12884-021-03880-9
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160.
Ezeudu, T. S., & Fadeyi, T. J. (2024). Examining the influence of infrastructure deficit on economic activities, education, and healthcare in rural areas of Nigeria. Nnamdi Azikiwe Journal of Political Science, 9(1), 155–176.
Hasyim, & Bakri, M. (2023). Challenges and strategies for small business survival. The Journal of Business and Management Research, 6(2), 80–90. https://doi.org/10.55098/tjbmr.v6i2.660
Joseph, T., Obikaonu, P., Ariolu, C., Nwolisa, C., & Aderohunmu, A. (2021). SMEs intervention programmes in Nigeria: Evaluating challenges facing implementation. Applied Journal of Economics, Management and Social Sciences, 2(1), 16–25. https://doi.org/10. 53790/ajmss.v2i1.10
Jusril, H., Ariawan, I., Damayanti, R., Lazuardi, L., Musa, M., Wulandari, S. M., Pronyk, P., & Mechael, P. (2020). Digital health for real-time monitoring of a national immunisation campaign in Indonesia: A large-scale effectiveness evaluation. BMJ Open, 10(12), Article e038282. https://doi.org/10.1136/bmjopen-2020-038282
Nalianya, M. (2017). Monitoring and evaluation systems and performance of non-governmental based maternal health projects in Bungoma South Sub-County, Kenya. European Scientific Journal, 13(23), 11–28. https://doi.org/10.19044/esj.2017.v13n23p11
National Bureau of Statistics. (2019). National survey of micro, small and medium enterprises (MSMEs) report. SMEDAN Press.
Nkontwana, P., & Stam, E. (2023). Entrepreneurial ecosystems for the Africa we want. Utrecht University, Utrecht University School of Economics. https://hdl.handle.net/10419/323044
Oliver, C. (1991). Strategic responses to institutional processes. Academy of Management Review, 16(1), 145–179. https://doi.org/10.5465/ amr.1991.4279002
Rasila, B. N. (2018). Challenges of failing to link monitoring and evaluation findings with development interventions in Limpopo province, South Africa. Sociology International Journal, 2(6), 693–698. https://doi.org/10.15406/sij.2018.02.00122
Scott, W. R. (2008). Institutions and organizations: Ideas and interests (3rd ed.). Sage Publications.
Small and Medium Enterprises Development Agency of Nigeria. (2022). National survey on MSMEs in Nigeria. SMEDAN Press.
Srivastava, S., & Mukherjee, T. (2025). Role of public policy and state capacity in influencing entrepreneurial activity: A cross-country analysis. Journal of Asia Entrepreneurship and Sustainability, 21(3), 86–96. https://doi.org/10.69980/9zrw0g89
Copyright (c) 2025 Ibrahim Mohammed Gaddafi, Oboromeni Weinoh, Mavis B. Madu, Aminat Abdulrasheed, A
This work is licensed under a Creative Commons Attribution 4.0 International License.
